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"I was wondering if anyone could tell me the proper way to lap the valves" I would have a shop precision-grind the valves and seats. Then, NO lapping is needed. Here's ONE type of seat refacer, that use:
"and if I should replace the 4 rotating exhaust valves with the fixed type. A mechanic here told me that the new gas has been causing the free valves to hydralic."
NEVER heard of such a thing. Nothing "hydraulic" involved here.
"Also I was wondering if it matter which way the exhaust valve springs go in. Does the tight coil part go up?"
IIRC, the "tight" coils go towards the HOT area, which would be "UP", in this case.
"And with the paper type head gaskets does it matter which way those go up?"
GENERALLY, any printing... part #'s, "this side up", etc., goes "UP". If NO markings AND the gasket is "symmetrical"... ALL holes line up the same either way, it doesn't matter "which way is up"!
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